Session Summary
ASEAN has the key ingredients for innovation, but close collaboration is needed to elevate the regional ecosystem.
ASEAN has a ready talent pool that needs to be upskilled. ASEAN’s workforce must be equipped with skills that are adaptable to evolving technologies, as 80% of companies demanding AI skills in their workforce, do not currently know where the needs for these skills will emerge from.
Infrastructure provides the foundation to develop, test and scale new technologies. ASEAN should take advantage of its increasing digital infrastructure to create cross-border networks of innovation and collaboration.
Government policy is key to fostering innovation. A conducive regulatory with favourable policies, tax incentives and research grants will attract investment and reduce barriers for collaboration and innovation.
Innovate, not regulate.
A culture of risk-taking is required to create new ideas and products. In San Francisco high schools, college rejection letters are displayed to embrace failure (a part of growth), foster resilience and challenge the status quo.
Malaysia should have an open perspective on what defines “success”. Grab is listed abroad and employs foreign talent, but that doesn’t make it less of a Malaysian success story. Success should not be limited to just local accomplishments, as celebrating wins on all scales encourages entrepreneurs to transcend geographical constraints and think globally.
Speed is the currency of innovation. The ability to swiftly respond to market changes and customer needs is crucial for today’s successful businesses. Teams should follow the “two-pizza” rule—small enough to be fed by two pizzas— to minimize bureaucratic delays within the organization.
Fostering innovation amidst geopolitical and economic flux demands focus and clarity.
Firms should dissociate from the macro and focus on things within their control. Rather than expanding energy on predicting election outcomes, interest rate fluctuations or geopolitical tensions, firms should concentrate on areas of influence, e.g. actionable strategies, without getting overwhelmed by forces beyond their influence.
Focus on creating value from problems unique to your geography. Innovation should address specific regional challenges instead of merely replicating business models from other regions. Many successful European companies like Wise and DeepL emerged as a solution to local problems such as cross-border payments and language translation. Similarly, ASEAN firms could tackle regional issues, leveraging insights that only they can offer and differentiating themselves through unique, place-based innovations.
If value is created, exits will follow. Sustainable growth comes from scalable solutions that add genuine value, rather than cost arbitrage. For example, tech-focused ASEAN companies can leverage the region’s diverse market to scale innovations and navigate supply chain challenges to build a strong foundation, attract investment and exit successfully.